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State-owned specialised financial institution IFCI Ltd hopes to garner about ₹3,000 crore during the current fiscal by selling stake in the National Stock Exchange (NSE), Clearing Corporation of India Ltd (CCIL) and Stock Holding Corporation of India Ltd (SHCIL)
“Post the SEBI order in the NSE matter, the path is clear for stake sale in the NSE, and we plan to do this in the current fiscal,” E Sankara Rao, MD and CEO of IFCI, told reporters here.
IFCI holds 2.4 per cent stake in the NSE and going by the current valuation, the sale could fetch ₹1,000 crore or even more. At the same time, the stake sale in CCIL and SHCIL could bring in up to ₹500 crore and ₹1,200 crore respectively, he said.
IFCI is also awaiting the government’s equity infusion of ₹200 crore. The Finance Ministry did make a provision for this amount in the interim Budget, but the amount is yet to be transferred. “With the stake sale in non-core businesses and the government’s equity infusion, the company is expected to be a green zone by March 2020,” Rao said.
At the end of fiscal 2018-19, according to a BSE filing, the company’s total turnover was ₹453.95 crore, while its net loss was at ₹37.66 crore.
At present, the company’s debt-equity ratio is 3:2. The company is expected to leverage the funds raised for resource generation. All the money raised will be used for business growth.
During the last fiscal (2018-19), disbursement and debt servicing payments amounting over ₹9,000 crore were funded entirely by way of internal generation.
The company is adopting a cautious approach towards new sanctions. As of now, the focus is only on ‘A’ or above rated companies, which has given desired results. During 2018-19, 36 accounts worth ₹3,760 crore were sanctioned, of which none has turned non-performing (NPA).
The company managed to recover over ₹2,600 crore during the last fiscal, nearly double that of the previous year. As on date, overall gross NPA is around ₹8,400 crore while net NPA is ₹4,000 crore.
The company has adopted a six-point strategy for the enhancement of its balance sheet. This includes an enhanced qualitative approach, with due diligence and integrated risk management; ramping up the proportion of short- and medium-term loans in fresh business; and a renewed focus on loans to the manufacturing and services sectors, as well as on financing brownfield projects and operating units.
The company is also looking at a higher threshold credit rating for mobilising fresh business and targeting sunrise sectors with double-digit growth prospects.
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